\u3000\u3000 Rockchip Electronics Co.Ltd(603893) (603893)
Event overview
The company released the performance express for 2021. During the reporting period, the total operating revenue was 2.719 billion yuan, a year-on-year increase of 45.90%, the net profit attributable to the shareholders of the listed company was 603 million yuan, a year-on-year increase of 88.57%, and the basic earnings per share was 1.46 yuan, a year-on-year increase of 84.81%.
Analysis and judgment:
High growth in 2021, multi product lines follow into a growth period
According to the company’s performance express, the demand for aiot in the downstream application field of the company’s products increased rapidly in 2021, including smart home, commercial office equipment, intelligent education electronics and other artificial intelligence internet of things devices, which promoted the growth of the company’s sales in this field; At the same time, the company launched large-scale mass production of new products such as machine vision chip rv11xx and intelligent application processor rk356x, which further expanded the company’s customer base and application scenarios and brought new impetus to the company’s performance growth. The company also mentioned that the supply chain of the industry was tight in 2021, and the production capacity supply of the company’s main OEM plants failed to grow when the demand increased significantly. The actual negative growth of production capacity during the reporting period led to the shortage of some main products and limited performance growth. We believe that under the background of the abnormal supply chain in 2021, the production capacity of the company’s main model products is limited and can not match the real demand of the market. However, relying on the promotion of new product lines, the company guides part of the demand to higher-end products and upgrades the product revenue structurally Rk356x and others have carried out large-scale mass production, so the company can achieve such rapid growth when the supply is affected. On the one hand, it shows that the downstream demand is continuously high, and on the other hand, it shows that the company is very mature in terms of product line construction and downstream customer ecological construction. During the reporting period, the total operating income was 2.719 billion yuan, a year-on-year increase of 45.90%, the net profit attributable to shareholders of listed companies was 603 million yuan, a year-on-year increase of 88.57%, and the basic earnings per share was 1.46 yuan, a year-on-year increase of 84.81%. At the same time, at the end of 2021, the company released the flagship chip rk3588 of 8nm, benchmarking eight application scenarios. The product performance is at the leading level in China. It has the opportunity to form a breakthrough from the process structure to the customer market, which will lay a solid foundation for the company’s rapid growth in the next step. On the whole, we believe that rk3588 is a high-end scarce product in China. Compared with the 3559 series of China Hisilicon, the company’s supply stability is relatively predictable. Compared with the products of overseas large manufacturers, the company has higher cost performance. Therefore, the import speed of rk3588 in China is expected to exceed expectations, superimposed with rv11xx Rk356x series products have entered the stage of large-scale mass production, and the subsequent volume is expected to accelerate. Therefore, we judge that the company’s multiple product lines are expected to make concerted efforts in 2022 to drive the sustained and high growth of the company’s performance.
Release incentive plan to show confidence in long-term development
On January 26, 2022, the company issued the 2022 stock option and restricted stock incentive plan (Draft). According to the announcement, there are 137 incentive objects to be granted for the first time, including the company’s core technical personnel, technical backbone personnel and business backbone personnel, The performance assessment objectives of the subsequent annual exercise from 2022 to 2024 are to meet one of two conditions: (1) based on the operating income in 2021, the growth rate of operating income in 2022 shall not be less than 20% / based on the operating income in 2021, the growth rate of operating income in 2023 shall not be less than 44% / based on the operating income in 2021, the growth rate of operating income in 2024 shall not be less than 73%; Or (2) based on the net profit in 2021, the net profit growth rate in 2022 shall not be less than 20% / based on the net profit in 2021, the net profit growth rate in 2023 shall not be less than 44% / based on the net profit in 2021, the net profit growth rate in 2024 shall not be less than 73%. We believe that the company has achieved rapid growth in 2021, and its base has been high. The company’s performance appraisal setting based on the performance in 2021 itself shows the company’s confidence in the rapid development in the future. The incentive plan covers a wide range, which can effectively unite the core personnel of the company and jointly promote the rapid development of the company’s business.
Investment advice
According to the performance express, the performance forecast for 2021 is adjusted. The revenue in 2021 is adjusted from 3.244 billion yuan to 2.719 billion yuan, and the net profit attributable to the parent company is adjusted from 608 million yuan to 602 million yuan. The performance forecast for 2022 and 2023 remains unchanged. The company’s revenue from 2021 to 2023 is expected to be 2.719 billion yuan, 4.348 billion yuan and 5.868 billion yuan respectively, and the net profit attributable to the parent company is expected to be 602 million yuan, 912 million yuan and 1.272 billion yuan, corresponding to EPS of 1.44 yuan, 2.19 yuan and 3.05 yuan respectively, corresponding to the closing price of 111.22 yuan on January 26, 2022, and PE of 77.02 times, 50.88 times and 36.47 times respectively. Considering the long-term broad market of aiot track, the continuous development of the company’s product categories, the continuous development of customers and the continuous improvement of the supply situation caused by the continuous advancement of product process, Maintain the “buy” rating.
Risk tips
The R & D progress and market acceptance of new products are lower than expected; The demand for chips fluctuated sharply; Upstream wafer foundry
